With international trade at an all-time high, global markets are the new normal for U.S. companies and residents. In 2012, total volume of imports and exports in the United States was nearly $5 trillion—the largest in the world. U.S. international competitiveness can be assessed by comparing key economic measures across countries. These measures include gross domestic product, unemployment rates, compensation costs, labor productivity rates, and consumer prices. In this Spotlight on Statistics, we compare these and other measures across countries in the Americas, Europe, and Asia and the South Pacific to get a glimpse of how individual economies have performed in recent years and historically.

Here are some facts about international comparisons:

Generally since 1970, overall productivity and wealth have tended to grow together for all countries studied.

Although unemployment rates in the countries compared generally remained higher in 2011 than they were in 2008, most countries experienced some recovery in unemployment in 2011. Unemployment rates fell or stayed the same from 2010 to 2011 in all countries compared except Spain and the United Kingdom.

The percentage of the working age population employed has remained between 50 and 65 percent in most countries covered over the past 40 years, but the share of the working age population employed in each sector has shifted over time. The share employed in agriculture dropped by more than half in all countries studied except the Netherlands. The share employed in manufacturing, mining, and construction fell in all countries studied except the Republic of Korea. In contrast, the share of the working age population employed in services increased in all countries studied, and by 2011, the share was nearly 40 percent or above in all countries except Italy.

Labor force participation rates are higher for men than women in all countries compared, but relatively fewer women are working or actively seeking work in Turkey and Mexico. On the other end of the spectrum, men and women are much more evenly engaged in the labor force in Canada, New Zealand, and the United States.

Compared to the United States, countries with higher average hourly compensation costs in manufacturing were primarily in northern and western Europe. Countries with lower average hourly compensation costs were primarily in southern and eastern Europe, Asia, and Latin America.

Increases in labor productivity are approximately equal to the difference between the growth of output and the growth of hours worked. From 2000 to 2011, manufacturing output has outpaced hours in all countries compared, resulting in increasing productivity. The largest productivity gains were in the Czech Republic, Taiwan, and the Republic of Korea. Manufacturing productivity also increased in the United Kingdom, Spain, and Denmark despite declining output because hours worked declined even more.

Since 1970, manufacturing labor productivity has outpaced real hourly compensation in the United States. Although the productivity-compensation gap in the U.S. is the largest among the countries compared, all other countries studied except Norway also show a gap.

From 2007 to 2011, inflation averaged between 1.5 and 2.5 percent in all but four countries compared. Consumer prices increased at a somewhat faster rate in the United Kingdom and Belgium and slower in Switzerland. Japan was the only country where consumer prices declined since 2007.

International Labor Comparisons

With international trade at an all-time high, global markets are the new normal for U.S. companies and residents. In 2012, total volume of trade (imports and exports) in the United States was nearly $5 trillion—the largest in the world. U.S. international competitiveness can be assessed by comparing key economic measures across countries. These measures include gross domestic product, unemployment rates, compensation costs, labor productivity rates, and consumer prices. In this Spotlight on Statistics, we compare these and other measures across countries in the Americas, Europe, and Asia and the South Pacific to get a glimpse of how individual economies have performed in recent years and historically.

Note: GDP is converted to U.S. dollars using 2011 purchasing power parities (PPPs). PPPs are currency conversion rates that indicate the amount of money needed to purchase equivalent baskets of goods in different countries.Source: U.S. Bureau of Labor Statistics, International Labor Comparisons

Real gross domestic product per capita and per hour, in U.S. dollars

Gross domestic product (GDP) per hour is a general indicator of productivity while GDP per capita is an indicator of overall wealth in a country. Increases in productivity signal a potential for increases in a country's standard of living. Generally since 1970, overall productivity and wealth have tended to grow together for all countries shown. Countries which gravitate toward the lower right of the chart have lower productivity (GDP per hour) relative to their wealth (GDP per capita) than countries which gravitate to the upper left. Singapore and the United States, for example, have had consistently high wealth, relative to productivity. In contrast, productivity has been relatively higher than wealth in countries such as France and Germany.

Note: Data for Mexico refer to 2005–2011, data for South Africa refer to 2008–2011, and data for Turkey refer to 2006–2011.Source: U.S. Bureau of Labor Statistics, International Labor Comparisons.

Unemployment rates, 1996-2011 (continued)

Year

Mexico

Netherlands

New Zealand

South Africa

Spain

Sweden

Turkey

United Kingdom

1996

NA

6.6

6.3

NA

22.3

9.9

NA

8.1

1997

NA

5.6

6.9

NA

20.8

10.1

NA

7.0

1998

NA

4.4

7.7

NA

18.8

8.4

NA

6.3

1999

NA

3.5

7.1

NA

15.8

7.1

NA

6.0

2000

NA

3.1

6.2

NA

14.0

5.8

NA

5.5

2001

NA

2.5

5.4

NA

10.7

5.0

NA

5.1

2002

NA

3.1

5.3

NA

11.6

5.1

NA

5.2

2003

NA

4.1

4.8

NA

11.6

5.8

NA

5.0

2004

NA

5.0

4.0

NA

11.1

6.6

NA

4.8

2005

3.7

5.3

3.8

NA

9.2

7.7

NA

4.9

2006

3.7

4.3

3.8

NA

8.6

7.0

8.8

5.5

2007

3.8

3.6

3.7

NA

8.3

6.1

9.0

5.4

2008

4.1

3.1

4.2

22.8

11.4

6.1

9.9

5.7

2009

5.6

3.8

6.1

23.9

18.1

8.3

12.8

7.7

2010

5.5

4.6

6.5

24.9

20.2

8.3

10.9

7.9

2011

5.3

4.5

6.5

24.9

21.8

7.5

9.0

8.1

Note: Data for Mexico refer to 2005–2011, data for South Africa refer to 2008–2011, and data for Turkey refer to 2006–2011.Source: U.S. Bureau of Labor Statistics, International Labor Comparisons.

Unemployment rates, 1996-2011

Although unemployment rates in the countries compared generally remained higher in 2011 than they were in 2008, most countries experienced some recovery in unemployment in 2011: Unemployment rates fell or stayed the same from 2010 to 2011 in all countries compared except Spain and the United Kingdom. Historically, compared with unemployment rates in the 1990s, rates in 2011 were typically lower in a majority of countries. The United States is a notable exception, where unemployment rates in 2011 were about double the rates in the late 1990s.

Note: Industry includes manufacturing, mining, and construction.Source: U.S. Bureau of Labor Statistics, International Labor Comparisons.

Employment-population ratios by sector, 1970-2011

The percentage of the working age population employed has remained between 50 and 65 percent in most countries covered over the past 40 years, but the share of the working age population employed in each sector has shifted over time. The share of the working age population employed in agriculture dropped by more than half in all countries covered except the Netherlands, and the share of the working age population employed in industry (manufacturing, mining, and construction) fell in all countries covered except the Republic of Korea. In contrast, the share of the working age population employed in services increased in all countries covered, and by 2011, the share was nearly at or above 40 percent in all countries except Italy.

Note: Men's (women's) participation rates are as a percentage of the total male (female) working age population. Europe includes France, Germany, Italy, Netherlands, Spain, Sweden, and the United Kingdom.Source: U.S. Bureau of Labor Statistics, International Labor Comparisons.

Labor force size and participation rates by sex, 2011

Labor force participation rates provide information about what percentage of the working age population is employed or actively seeking work. Labor force participation rates are higher for men than women in all countries compared, but relatively fewer women are working or actively seeking work in Turkey (27 percent) and Mexico (41 percent). On the other end of the spectrum, men and women are much more evenly engaged in the labor force in Canada, New Zealand, and the United States, which have among the highest overall rates of labor force participation.

Note: Men's (women's) participation rates are as a percentage of the total male (female) working age population. Data for Mexico refer to 2005–2011, data for South Africa refer to 2008–2011, and data for Turkey refer to 2006–2011.Source: U.S. Bureau of Labor Statistics, International Labor Comparisons.

Women's Labor Force Participation Rate

Year

United States

Australia

Canada

France

Germany

Italy

Japan

Korea, Republic of

Mexico

Netherlands

New Zealand

South Africa

Spain

Sweden

Turkey

United Kingdom

1970

43.3

40.4

38.3

39.8

38.4

26.4

49.2

39.3

NA

NA

NA

NA

NA

50.0

NA

NA

1971

43.4

41.0

39.4

40.2

38.5

26.3

48.6

39.5

NA

NA

NA

NA

NA

50.9

NA

44.6

1972

43.9

41.2

40.2

40.6

39.0

25.6

47.8

39.6

NA

NA

NA

NA

NA

51.5

NA

44.9

1973

44.7

42.4

41.9

41.1

39.5

26.1

48.0

41.5

NA

28.5

NA

NA

NA

51.7

NA

45.8

1974

45.7

43.5

43.0

41.4

39.4

26.5

46.5

41.5

NA

28.7

NA

NA

NA

53.3

NA

46.4

1975

46.3

44.5

44.4

41.3

39.3

26.8

45.8

40.4

NA

29.5

NA

NA

NA

55.2

NA

46.6

1976

47.3

44.3

46.2

42.1

39.3

27.6

45.9

43.2

NA

29.9

NA

NA

NA

55.9

NA

46.7

1977

48.4

44.8

47.1

42.9

39.3

28.9

46.9

41.7

NA

30.6

NA

NA

27.0

56.7

NA

46.9

1978

50.0

44.5

48.5

43.2

39.6

28.8

47.5

43.3

NA

31.1

NA

NA

26.9

57.5

NA

47.4

1979

50.9

44.3

49.8

43.7

39.9

29.5

47.6

43.3

NA

32.1

NA

NA

26.9

58.5

NA

48.0

1980

51.5

45.5

51.0

44.0

40.3

30.1

47.2

42.8

NA

34.3

NA

NA

26.7

59.3

NA

48.6

1981

52.1

45.5

52.3

44.3

40.7

30.4

47.3

42.3

NA

36.7

NA

NA

26.3

60.1

NA

48.6

1982

52.6

45.4

52.3

46.6

40.7

30.3

47.6

43.4

NA

37.9

NA

NA

26.8

60.5

NA

48.1

1983

52.9

45.5

53.1

46.6

40.5

30.5

48.5

42.8

NA

37.1

NA

NA

27.5

60.8

NA

48.4

1984

53.6

46.1

53.9

47.0

40.7

30.5

48.0

40.7

NA

38.0

NA

NA

27.5

61.1

NA

50.2

1985

54.5

47.1

55.0

47.1

41.2

30.7

47.8

41.9

NA

37.9

NA

NA

27.7

61.5

NA

50.8

1986

55.3

49.3

55.7

47.7

41.4

31.9

47.8

43.1

NA

40.2

54.7

NA

28.1

61.7

NA

51.4

1987

56.0

50.0

56.5

47.6

41.7

32.2

47.8

45.0

NA

41.0

55.0

NA

31.0

61.9

NA

52.1

1988

56.6

50.8

57.4

47.4

42.3

32.3

48.0

45.0

NA

42.4

54.2

NA

32.5

62.4

NA

52.9

1989

57.4

52.2

58.1

47.6

42.7

32.6

48.7

46.6

NA

42.6

53.0

NA

32.7

62.7

NA

53.6

1990

57.5

53.2

58.5

47.6

43.1

32.8

49.3

47.0

NA

44.2

53.9

NA

33.4

63.0

NA

54.0

1991

57.4

53.0

58.4

47.5

47.7

33.2

49.8

47.1

NA

45.3

54.2

NA

33.9

62.4

NA

53.6

1992

57.8

53.1

57.8

47.9

47.4

33.3

50.0

47.1

NA

46.0

54.0

NA

34.7

61.3

NA

53.1

1993

57.9

52.9

57.6

48.4

47.2

35.7

49.7

47.1

NA

46.3

53.9

NA

35.4

60.1

NA

53.3

1994

58.8

53.6

57.4

48.6

47.1

35.5

49.5

47.8

NA

47.1

55.1

NA

36.5

59.2

NA

53.3

1995

58.9

54.7

57.3

48.9

47.1

35.7

49.3

48.4

NA

48.7

55.9

NA

37.1

59.5

NA

53.5

1996

59.3

55.0

57.3

49.2

47.4

36.1

49.4

48.9

NA

49.5

57.2

NA

37.7

59.4

NA

53.8

1997

59.8

54.8

57.8

48.8

47.8

36.3

49.7

49.8

NA

50.9

57.1

NA

38.4

58.6

NA

54.2

1998

59.8

55.1

58.5

49.1

48.2

36.9

49.4

47.1

NA

51.6

57.0

NA

38.8

58.0

NA

54.4

1999

60.0

55.0

59.1

49.3

48.3

37.4

48.8

47.6

NA

52.9

57.3

NA

39.5

58.1

NA

54.9

2000

59.9

55.8

59.5

49.6

48.4

37.9

48.7

48.8

NA

53.8

57.4

NA

41.0

59.2

NA

55.2

2001

59.8

56.2

59.8

49.7

48.6

38.4

48.5

49.3

NA

54.9

58.3

NA

40.0

59.5

NA

55.1

2002

59.6

56.3

60.9

50.0

48.7

38.7

47.9

49.8

NA

55.9

59.0

NA

41.8

59.9

NA

55.5

2003

59.5

57.1

61.9

50.4

48.8

38.6

47.6

49.0

NA

56.1

59.4

NA

43.5

59.9

NA

55.6

2004

59.2

56.9

61.9

50.5

49.2

38.3

47.6

49.9

NA

56.5

59.9

NA

44.8

59.7

NA

55.8

2005

59.3

58.0

61.6

50.6

50.3

37.9

47.6

50.1

39.0

57.1

61.0

NA

46.1

60.5

NA

56.1

2006

59.4

58.6

61.8

50.7

51.2

38.1

47.9

50.3

40.3

57.6

61.4

NA

47.7

60.8

22.0

56.6

2007

59.3

59.3

62.5

51.0

51.6

37.9

48.1

50.2

40.6

58.7

61.8

NA

48.7

61.3

22.1

56.4

2008

59.5

60.0

62.6

51.2

51.8

38.6

48.0

50.0

40.6

59.1

62.1

50.8

50.3

61.2

22.8

56.7

2009

59.2

60.1

62.5

51.6

52.1

38.2

48.2

49.2

41.1

59.4

62.2

49.0

51.4

60.7

24.1

56.8

2010

58.6

59.8

62.4

51.6

52.4

38.2

48.2

49.4

41.0

58.0

62.1

47.4

52.1

60.6

25.6

56.8

2011

58.1

60.0

62.2

51.5

53.2

38.4

47.7

49.7

41.2

58.0

62.5

47.9

52.8

61.1

27.0

56.9

Note: Men's (women's) participation rates are as a percentage of the total male (female) working age population. Data for Mexico refer to 2005–2011, data for South Africa refer to 2008–2011, and data for Turkey refer to 2006–2011.Source: U.S. Bureau of Labor Statistics, International Labor Comparisons.

Labor force participation rates by sex, 1970-2011

Men continue to have higher rates of labor force participation than women, but the gap between the two has been narrowing over the past 40 years in all countries compared. In most countries, this is due to a combination of a decreasing rate of participation for men and an increasing rate for women. In 2011, the gap between the sexes was narrowest in Sweden, Canada, and France, and was largest in Turkey, Mexico, and the Republic of Korea.

Manufacturing average hourly compensation costs in U.S. dollars, by components of compensation, 2011

Country

Hourly Compensation

Total

Hourly Direct Pay

Hourly Social Insurance

Total direct pay

Pay for time worked (wages and salaries)

Directly paid benefits

United States

35.53

26.87

23.70

3.17

8.65

Argentina

15.91

13.14

10.92

2.23

2.77

Australia

46.29

37.04

32.63

4.41

9.25

Austria

43.16

32.09

22.82

9.26

11.07

Belgium

54.77

37.12

26.07

11.05

17.64

Brazil

11.65

7.93

6.27

1.66

3.72

Canada

36.56

29.07

25.48

3.59

7.49

Czech Republic

13.13

9.54

7.77

1.77

3.59

Denmark

51.67

46.70

39.15

7.54

4.97

Estonia

10.39

7.71

6.73

0.98

2.69

Finland

44.14

34.94

26.43

8.51

9.20

France

42.12

29.51

21.70

7.80

12.61

Germany

47.38

37.13

27.70

9.44

10.24

Greece

21.78

16.75

12.66

4.08

5.03

Hungary

9.17

7.01

5.20

1.81

2.16

Ireland

39.83

33.43

27.43

6.00

6.39

Israel

21.42

17.92

16.42

1.50

3.49

Italy

36.17

25.70

20.43

5.27

10.47

Japan

35.71

29.25

20.23

9.02

6.46

Korea, Republic of

18.91

15.21

NA

NA

3.70

Mexico

6.48

4.53

NA

NA

1.95

Netherlands

42.26

33.29

24.29

9.01

8.97

New Zealand

23.38

22.39

19.70

2.69

0.99

Norway

64.15

53.18

NA

NA

10.98

Philippines

2.01

1.84

1.49

0.35

0.17

Poland

8.83

7.58

5.35

2.23

1.25

Portugal

12.91

10.37

7.88

2.49

2.54

Singapore

22.60

18.96

15.00

3.95

3.64

Slovakia

11.77

8.58

6.38

2.20

3.19

Spain

28.44

21.22

15.65

5.57

7.22

Sweden

49.12

32.94

27.82

5.13

16.18

Switzerland

60.40

51.16

39.92

11.24

9.25

Taiwan

9.34

8.00

NA

NA

1.35

United Kingdom

30.77

26.04

21.98

4.05

4.73

Note: For Mexico, Republic of Korea, Norway, and Taiwan, pay for time worked and directly paid benefits are combined into total direct pay.Source: U.S. Bureau of Labor Statistics, International Labor Comparisons.

Components of manufacturing average hourly compensation costs as a percent of total compensation, 2011

Country

Hourly Compensation

Total

Hourly Direct Pay

Hourly Social Insurance

Total direct pay

Pay for time worked (wages and salaries)

Directly paid benefits

United States

100

75.6

66.7

8.9

24.4

Argentina

100

82.6

68.6

14.0

17.4

Australia

100

80.0

70.5

9.5

20.0

Austria

100

74.3

52.9

21.5

25.7

Belgium

100

67.8

47.6

20.2

32.2

Brazil

100

68.1

53.8

14.3

31.9

Canada

100

79.5

69.7

9.8

20.5

Czech Republic

100

72.7

59.2

13.5

27.3

Denmark

100

90.4

75.8

14.6

9.6

Estonia

100

74.2

64.7

9.4

25.8

Finland

100

79.2

59.9

19.3

20.8

France

100

70.1

51.5

18.5

29.9

Germany

100

78.4

58.5

19.9

21.6

Greece

100

76.9

58.2

18.7

23.1

Hungary

100

76.5

56.7

19.8

23.5

Ireland

100

83.9

68.9

15.1

16.1

Israel

100

83.7

76.7

7.0

16.3

Italy

100

71.1

56.5

14.6

28.9

Japan

100

81.9

56.6

25.3

18.1

Korea, Republic of

100

80.4

NA

NA

19.6

Mexico

100

69.9

NA

NA

30.1

Netherlands

100

78.8

57.5

21.3

21.2

New Zealand

100

95.8

84.2

11.5

4.2

Norway

100

82.9

NA

NA

17.1

Philippines

100

91.5

74.2

17.3

8.5

Poland

100

85.9

60.6

25.3

14.1

Portugal

100

80.3

61.1

19.3

19.7

Singapore

100

83.9

66.4

17.5

16.1

Slovakia

100

72.9

54.2

18.7

27.1

Spain

100

74.6

55.0

19.6

25.4

Sweden

100

67.1

56.6

10.4

32.9

Switzerland

100

84.7

66.1

18.6

15.3

Taiwan

100

85.6

NA

NA

14.4

United Kingdom

100

84.6

71.4

13.2

15.4

Note: For Mexico, Republic of Korea, Norway, and Taiwan, pay for time worked and directly paid benefits are combined into total direct pay.Source: U.S. Bureau of Labor Statistics, International Labor Comparisons.

Manufacturing average hourly compensation costs in U.S. dollars, by components of compensation, 2011

Hourly compensation costs measure the average hourly cost to employ a worker, including benefits. Compared to the United States, countries with higher average hourly compensation costs were primarily in northern and western Europe. Countries with lower average hourly compensation costs were primarily in southern and eastern Europe, Asia, and Latin America. Expanding the chart to show components of compensation as a percentage of total compensation reveals that the proportion of directly paid benefits (mostly leave time and bonuses) was lower in the United States than in all countries compared except Israel, while the proportion of social insurance costs tended to be higher than the U.S. level in Europe and Latin America.

Source: U.S. Bureau of Labor Statistics, International Labor Comparisons.

Average hourly compensation costs in sub-manufacturing industries, U.S. dollars, 2011

Average hourly compensation costs in manufacturing can vary widely by industry. In the United States, average costs in the highest cost industry (other transport equipment) are nearly 2.5 times those of the lowest cost industry (wearing apparel). Selecting other countries shows that, in general, the same industries (for example, petroleum and pharmaceuticals) tend to rank among the highest compensated industries across countries, while the same is true for the lowest compensated industries (apparel, textiles, leather, and wood).

Increases in labor productivity are approximately equal to the difference between the growth of output and the growth of hours worked; the larger the gap between output and hours, the greater the productivity growth. Since 2000, output has outpaced hours in all countries compared, resulting in increasing productivity. The largest productivity gains were in the Czech Republic, Taiwan, and the Republic of Korea, and were primarily the result of strong output growth (while hours dipped slightly); productivity also increased in the United Kingdom, Spain, and Denmark despite declining output because hours worked declined even more.

In 2011, output growth was the main driver of productivity in many countries, although robust productivity growth in both Spain and the United Kingdom resulted from approximately equal portions of output growth and hours decline. The four countries with red bars at the right of the chart experienced declines in productivity when output was outpaced by hours; Australia, where output fell about 2 percent despite a 2 percent increase in hours, saw the biggest drop in productivity.

Source: U.S. Bureau of Labor Statistics, International Labor Comparisons.

Gap between productivity and real hourly compensation in manufacturing, 1970-2011

Since 1970, labor productivity has outpaced real hourly compensation in the United States, creating a productivity-compensation gap. Increases in productivity signal a potential for increases in labor income, and by extension, for increases in the standard of living of workers. Although the U.S. gap is the largest among the countries compared, selecting other countries shows the existence of a productivity-compensation gap in all countries except Norway.

Consumer price indexes (CPI) and harmonized indexes of consumer prices (HICP) are two measures of consumer price changes. The HICP, however, are adjusted for comparability across countries, whereas the CPI are not adjusted. Over the past 4 years, inflation averaged between 1.5 and 2.5 percent in all but four countries compared. Prices increased at a faster rate in the United Kingdom and Belgium, while Japan was the only country where prices declined since 2007.